Managed accounts can provide demonstrable value according to the document. The document discusses how an investment manager, Empire Builder, aims to scale investments to new levels and create lasting value for families over time through a risk-appropriate approach. It also notes that the current environment requires a dynamic portfolio management style due to increased market volatility and complexity. The document promotes several investment strategies and products from Auroch that are aimed at achieving clients' goals through a structured approach focused on research, advice, process, people, and portfolio structure.

1. Managed Accounts
Demonstrable Value
SEBI Portfolio Manager Registration PM/INP000004086 August 2012

2. Empire Builder
An Empire Builder to us is about our ambition to scale the next level, to create
something that outlasts us, to free the family from the cycle of salary earners,
to give back to our communities, to be recognized for our accomplishments.
Empire Builder is that defining vision that drives us to bring material change
to your investments over time.

3. A Time, but once in Generations
Our parents don’t tire of reminding us how good
we have it. India’s emergence as a global
economy has already shown up in increased
spending power, vast consumer choices, better
infrastructure. This is just the beginning, as India
becomes the third largest economy, more in on its
way. Just look at some of the mind-boggling daily
consumption figures and treble them and you
begin to get a sense of how powerful this trend is.
Our generation has the unique opportunity to achieve our
life goals with the right structure and patience. All too
often we pursue these in piece meal because of various
products we are offered. While we ought to be focusing
on outcomes instead.

4. Do more with opportunity and acumen than just save
Traditional Strength + Material Tailwind Low Yields + No Obvious Tailwind
Security
W
Responsibilities
Aspirations
Savings
w Philanthropy
S
WEALTH
This is a given. We do a great job at saving, Story gets lost here, as we fail to back-up our Sustainable financial freedom
which when allied to India Growth means more savings with risk appropriate returns. is achievable over time with
savings even with more consumption Falling on next gen is a missed opportunity good investments
Your income is the most direct indicator of the India growth as companies pay to increase quality and reach.
Your standard of living goes up in direct proportion, ex a little thing called inflation. Yes you can afford to
buy a house earlier in your career but it costs much more. This is even more relevant as globalization has
brought in greater boom-busts cycles which require that you have enough to ride out the rough times. While
you stand to gain directly from rising incomes you can also participate in the upside of equity by owning
companies that are well placed to emerge winners in their industries, perhaps globally.

5. Equity Allocation, Compounding and the Right Investment Manager – can
mean realizing your most cherished dreams
1 Cr that you invest at 20%, becomes 6.2Cr in 10 years
Which means you can now
confidently secure:
Your 4 acre plot in Ooty to make you a
gentleman farmer
Rs. 1 Crore
Kid’s Education Abroad
Rs. 80 Lac
That luxury car you always wanted
Rs. 30 Lac
18% is long term historic average of BSE Sensex and 24% for Small Cap Index. This is purely for
The NGO you always wished to start illustrative purposes, actual equity returns show large volatility around the long term average. Past
performance should not be assumed as to be repeated in the future
Rs. 20 Lac
And… Financial freedom, your 3.9 Cr at 10%, earns Rs. 40 Lac pa in perpetuity
Think about more important things

6. But wait… while the opportunity is large the world is
a very different place …
Structural Reset to Tam e Glo bal Im balan ces
Financial Times – May 2010
In c reased Pric e Vo latility Here to Stay
The Economic Times – April 2010
Large economic changes like the deleveraging of developed countries, Dollar/Yaun imbalance, greater
cross border movement of labor and capital, uncertain/dwindling powers of central banks in
M arket Ineffic ienc y Exists targeting inflation and or credit, necessitates a dynamic portfolio management style.
[Small Cap, Momentum, Low PE/PB, Irrational Behavior]
Journal of Finance (French-Fama 3 Factor Model) – August 1990 The Death o f Buy an d Ho ld
Small capitalization stocks tend to be less well followed so there are more opportunities to CNBC – May 2009
find outperformance. Indian markets are led by technicals so momentum is even more If you bought the Dow in 2000 and held for 10 years you would still be holding the same
pronounced in the domestic market. Over reaction to news, positive or negative, amount. If you bought the Nikkei in 1990 and held for 20 years you would still be holding
consistently provide opportunities to trade. the same amount. Buy and hold is well and truly dead.
Yale Study Says Active M anagem ent Wo rks
Yale - June 2010
In an exhaustive study by Yale, an actively managed portfolio outperformed passive strategies by
over 11%. The data in Indian market is more stark.
Tactical Asset Allo catio n M o st Effective
Journal of Asset Allocation – December 2009
Using static weights on equities and debt based on risk or age is outdated. Varying allocations
based on levels of over/under pricing has consistently given better results

7. What you need a structured approach that is effective, transparent
and fits your context
Analyzing performance
numbers is not enough.
remember, The Human
Element
Success in
Balance Personal Goals with Market context
investing has a
pattern
Historical
performance is only a
Fancy labels or in- sound predictor if the
investment
vogue themes belong
philosophy, process
in your wardrobe
Debt is for wealth and personnel are
preservation – Equity committed to the same
If something sounds is for growth . Your value. Things should
Certain themes become
allocation to equities be understandable and
too good to be true, it popular because there
will drive your excess reasonably simple. If
probably is is great strength in its
return. After that it you can't understand
underlying premise.
boils down to it, the manager
When you buy an in-
choosing strong probably doesn't
vogue theme prices
Start with your self companies and either.
have already been bid
– The Context calibrating the holding
up.
period
Your Capital, In your Name, based on your Goals

8. India’s Premier Manufacturer of Investment Products
Auroch is amongst the only firms that use custom proprietary software for both front and middle office.
All methodologies are vetted by international luminaries in the field of finance before they are implemented

9. Auroch is the Absolute Return Investment Manager of choice for
India’ HNI & Institutions
Drop
Range
Oil Bottom after
We said We said Bound
Goldman Budget Will look for
8000 was Market will
said $200 validation
bottom drop
Our Clients rode We waited to We changed strategy
We said $70 the whole buy the dip
retracement
Oil went to $60 in
two months
In Investments it matters only if you arrive at a conclusion
before the crowd
It helps to work with a team that has consistently called the turns
… Smart-Money already does
Some of India’s Leading Financial Institutions look to us for
custom products
Investment Managers provide a structured alternative to
index-hugging, in an asset class known for sharp
variability. Let professionals bring their value; you hold
them accountable

10. Why YOU should choose Auroch
Research
Our research is driven by analytical rigor and a
3
commitment to objectivity, to ensure that our Portfolio
recommendations reflect the best information Random stock tips or overlapping mutual
available and adhere to our clients’ best interests finds don’t do much to maximize your
wealth while exposing you to untracked
risk.
4
Perspective
Strategies need to be based on your
personal goals, capital, and
investment horizon not obscure
themes. Great advice cannot be
2 Advice has to stand to scrutiny Process
We place great emphasis in
and be demonstrable. Our
productized as it is not possible to our manufacturing
singular focus and deep
capture the richness of investments competence as your portfolio
expertise in manufacturing is
in cookie-cutter formats is only as good as the
difficult to match products it stands on.
5
1
People
our team is hired, trained and
specialize in a single product. As a Structure
serious investor it is important to bring A simple way to manage your investments:
in professional that can bring
international best practices to your
portfolio.
6 our structure is a key enabler where all
research is in-house, we have no I-Banking
conflicts that drag performance and our
incentives are aligned

11. Auroch Track Record - Proof is in the Numbers
Consistent Outperformance
• Auroch 30% | Sensex -2%
Demonstrated Manager Value
• Information ratio of 1.1
(Int’l Best in Class)
Near Market Neutrality
• Portfolio Beta 0.21
Reduced Max Drawdown
• Auroch 10% | Sensex 23%
Jan 2010 to Jul 2012
To achieve a 30% return with Beta of
Portfolio Alpha
0.2, in one of history’s trickiest markets
speaks to the process robustness and
Management
Allocation
consistent application of the team
Tactical
through cycles.
Active

12. Auroch Product Suite
Simple Construct | Proven Track Record
Strategies need to be based on your personal goals, capital, and investment horizon not obscure themes. It should allow you to run multiple
strategies within the same managed account structure. Random stock tips or overlapping mutual funds are sub optimal as they don’t take into
account your goal or your investment horizon. This is a clear failing which subjects you to too much risk or too little – the idea is to manage risk to
help you achieve your goals. Securities are secondary to the purpose for which the portfolio is been structured.
Your Investment Force Multipliers Maestro High Prob. Trade India Super Cycle
Long horizon bet on India's Optimized to generate substantial System generated inputs to
growth story. Pure fundamental returns in a limited horizon. lower human intervention.
Thinking approach focused on business Maximizes M-cap cycles through Focused on emerging stocks in
value sub strategies smaller capitalizations
Growth at Reasonable
Edge Trading Mandate Long Term Value
Price
Approach Top-down Relative Out- Risk Managed Absolute Bottom-up Value
Performance Return
Dividends / SIP / Exception Dividends / SIP / Exception Dividends / SIP / Exception
Innovative Options List / Advance, Int’l Tax List / Advance Tax filing List / Advance, Int’l Tax
filing support support filing support
Minimum Capital 50 Lac 2 Crore 5 Crore
No strategy outperforms at all time. Decision rests on diversification not only across asset classes but also
across risk categories, and strategies.
Some products are given a deemed sophisticated gloss to make it seem like it can offer something for nothing – they cannot.
All products are bound by the laws of economics.

13. Years from now, your family will remember your
investments today as the start of their considerable
wealth.
The Empire Buildertm Portfolio
91-80-4117-1165 | | portfolio@auroch.in